The difference between performance management and performance appraisal

In considering the nature of performance management and performance appraisal we firstly need to appreciate how these two aspects are related but equally should not be seen synonymously. In fairly simple terms performance management can be seen as a holistic process which aims to bring together a number of aspects, including appraisal. Thus, performance management may be thought of as being more strategic in its intent to achieve high levels of organizational performance. By contrast, performance appraisal is best seen as being more operationally focused, with a focus on individual employees short- to medium-term performance and development (CIPD, 2005a). Consequently, to fully contextualize the notion of performance appraisal it is important to locate it within wider issues concerned with performance management systems (PMS) which may have an organizational, team or individual focus. Armstrong (2001: 469) suggests that performance management has a number of aims: Performance management is about getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competing requirements. It is a process for establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way which increases the probability that it will be achieved in the short and long term. It is owned and driven by management. Clearly, then, organizations are always seeking improvements in their performance and these can be sustained by either development-type initiatives or more evaluative or even punitive measures, potentially encompassing aspects of discipline. In that sense performance management and performance appraisal can arguably be seen to again reflect to some degree the notions of ‘hard’ and ‘soft’ HRM. For example, the harder approaches would point to the need for organizations and managers to seek control over their employees; on the other hand softer approaches would point to the role of PMS in establishing greater commitment and developing careers. Recognizing the above discussion this thread will aim to consider the question of what options are open to an organization seeking to improve the performance of its employees.

Transcript of "Difference between performance appraisal and performance management"

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Difference between performance appraisal and performance managementPerformance appraisals arent fun. But a lot of the time they are agonizing becausemanagers do really dumb things, ending up destroying a process that is important toeveryone (or should be). Appraisals are always going to be a little bit stressful foreveryone, but these errors guarantee that the point of appraisals -- improvingperformance, is lost in the shuffle.Stupid Thing #1: Spending more time on performance appraisal than performancePLANNING, or ongoing performance communication.Performance appraisal is the end of a process that goes on all the time - a process that isbased on good communication between manager and employee. So,more time should bespent preventing performance problems than evaluating at the end of the year. Whenmanagers do good things during the year, the appraisal is easy to do and comfortable,because there wont be any surprises.Stupid Thing #2: Comparing employees with each other.Want to create bad feelings, damage morale, get staff to compete so badly they will notwork as a team? Then rank staff or compare staff. A guaranteed technique. And heck, notonly can a manager create friction among staff, but the manager can become a greattarget for that hostility too. A bonus!Stupid Thing #3: Forgetting appraisal is about improvement, not blame.We do appraisal to improve performance, not find a donkey to pin a tail on or blame.Managers who forget this end up developing staff who dont trust them, or even cantstand them. Thats because the blaming process if pointless, and doesnt help anyone. Ifthere is to be a point to performance appraisal it should be getting manager and employeeworking together to have everyone get betterStupid Thing #4: Thinking a rating form is an objective, impartial tool.Many companies use rating forms to evaluate employees (you know, the 1-5 ratings?).They do that because its faster than doing it right. The problem comes when managersbelieve that those ratings are in some way "real", or anything but subjective, often vaguejudgements that are bound to be subjective and inaccurate. By the way, if you have twopeople rate the same employee, the chances of them agreeing are very small. THATSsubjective. Say it to yourself over and over. Ratings are subjective. Rating forms aresubjective. Rating forms are not behavioral.

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Stupid Thing #5: Stopping performance appraisal when a persons salary is nolonger tied to the appraisals.Lots of managers do this. They conduct appraisals so long as they have to do so to justifyor withhold a pay increase. When staff hit their salary ceiling, or pay is not connected toappraisal and performance, managers dont bother. Dumb. Performance appraisal is FORimproving performance. It isnt just about pay (although some think it is ONLY aboutpay). If nothing else, everyone needs feedback on their jobs, whether there is moneyinvolved or not.Stupid Thing #6: Believing they are in position to accurately assess staff.Managers delude themselves into believing they can assess staff performance, even ifthey hardly ever see their staff actually doing their jobs, or the results of their jobs). Notpossible. Most managers arent in a position to monitor staff consistently enough to beable to assess well. And, besides what manager wants to do that or has the time? And,what employee wants their manager perched, watching their every move? Thats whyappraisal is a partnership between employee and manager.Stupid Thing #7: Cancelling or postponing appraisal meetings.Happens a whole lot. I guess because nobody likes to do them, so managers will postponethem at the drop of a hat. Why is this bad? It says to employees that the process isunimportant or phony. If managers arent willing to commit to the process, then theyshouldnt do it at all. Employees are too smart not to notice the low priority placed onappraisals.Stupid Thing #8: Measuring or appraising the trivial.Fact of life: The easiest things to measure or evaluate are the least important things withrespect to doing a job. Managers are quick to define customer service as "answering thephone within three rings", or some such thing. Thats easy to measure if you want to.Whats NOT easy to measure is the overall quality of service that will get and keepcustomers. Measuring overall customer service is hard, so many managers dont do it. Butthey will measure the trivial.Stupid Thing #9: Surprising employees during appraisal.Want to really waste your time and create bad performance? This is a guaranteedtechnique. Dont talk to staff during the year. When they mess up, dont deal with it at thetime but SAVE it up. Then, at the appraisal meeting, truck out everything saved up in thebank and dump it in the employees lap. Thatll show em who is boss!Stupid Thing #10: Thinking all employees and all jobs should be assessed in exactlythe same way using the same rocedures.

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Do all employees need the same things to improve their performance? Of course not.Some need specific feedback. Some dont. Some need more communication than others.And of course jobs are all different Do you think we can evaluate the CEO of Ford usingthe same approach as we use for the person who cleans the factory floor? Of course not.So, why do managers insist on evaluating the receptionist using the same tools andcriteria as the civil engineers in the office?(c) 2005, Robert Bacal, Bacal & Associates. You are welcome to "reprint" this articleonline as long as it remains complete and unaltered (including the "about the author" infoat the end) all links are made live, and this copyright notice and indication of authorshipare included.http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms forperformance appraisal.